Capital market able to meet 50% of oil industry’s investment needs: SEO head

February 15, 2020 - 14:19

TEHRAN – Head of Iran's Securities and Exchange Organization (SEO) Shapour Mohammadi says the capital market is able to meet more than 50 percent of the oil industry’s funding requirements, IRNA reported.

“The capital market has issued over 1.3 quadrillion rials (about $3.9 billion) worth of bonds this year and considering this figure it is clear that this market is able to finance over 50 percent of the oil industry’s projects,” Mohammadi said in a seminar on development of the oil industry’s monetary system.

The official further put the total value of the deals made in Iran Energy Exchange (IRENEX) at 450 trillion rials (over $10.7 billion) in the present Iranian calendar year (started on March 21, 2019), while the total value of the stock exchange transactions stands at 8.3 quadrillion rials (about $197.6 billion) since the beginning of the year.

Elsewhere in his remarks, Mohammadi noted that the government and the SEO should create incentives for people to encourage them for investment in the capital market, saying that “there should be a reason for people to choose investment rather than depositing.”

“Investment risks should be offset by increased interest rates and returns,” he added.

Iranian Oil Minister Bijan Namdar Zanganeh had said in the same seminar that the oil industry needs more than $25 billion of investment every year, and if this doesn’t happen other areas of the economy would also suffer the consequences.

Zanganeh had also emphasized that more than $30 billion is required for completing unfinished petrochemical projects across the country.

EF/MA

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